Nigeria embraces digital agenda and collaborative mindset to drive digital transformation

Date: 2024-07-29
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A recent report by the International Telecommunication Union (ITU) titled "Collaborative Regulation: Accelerating Nigeria's Digital Transformation" highlights Nigeria's progress in embracing a clear digital agenda and collaborative mindset to drive digital transformation.

The report, developed by the ITU's Regulatory and Market Environment Division (RME) of the Telecommunication Development Sector (BDT), with the support of ITU Regional Office for Africa, emphasizes the importance of collaborative regulation in accelerating digital transformation.

Dr. Cosmas Luckyson Zavazava, Director of the Telecommunication Development Bureau (BDT) and ITU, noted that country reviews like this report are essential tools for regulators and policymakers. They help create an environment that promotes investment, competition, digital innovation, protects consumers, and ensures the benefits of digital transformation are widely shared.

The report highlights Nigeria's institutional, policy, and regulatory frameworks, which demonstrate a commitment to a clear digital agenda. It also notes the importance of collaborative digital governance, awareness among stakeholders, and implementation, monitoring, and evaluation to ensure effective execution of Nigeria's digital transformation strategy.

As a regional leader and G4 regulator, Nigeria has the opportunity to become a leading G5 country, embracing policy cohesion and lean governance. By adopting best practice regulatory principles and continuing the implementation of good regulatory design principles, Nigeria can unlock the potential of digital transformation to deliver on its national development agenda.

The report's recommendations, combined with the adoption of ITU GSR-20 Best Practice Guidelines, will propel Nigeria towards the 'gold standard of digital regulation', cementing its position as a leader in the region and driving progress on its regulatory journey.

However, the report also identifies key constraints to the expansion of high-speed Internet in Nigeria, including the underdeveloped national backbone network. Despite the existence of 60,000 km of fibre optic networks, only 28% of the population is within a 10 km range of a fibre optic node.

The report notes that effective market failure in rural areas, high costs of operation, and lack of reliable grid electricity supply reduce the viability of services. On the demand side, constraints include low consumer incomes, high price sensitivity, low digital literacy, and lack of local content.

The digital literacy gap is a significant concern, as it excludes the poorest from the benefits of the digital world. As a result, Internet penetration in Nigeria is well below global standards, although it compares favourably to the rest of the Africa region.

To address these challenges, the report recommends collaborative regulation, investment in digital infrastructure, and initiatives to improve digital literacy and local content. By adopting best practice regulatory principles and continuing the implementation of good regulatory design principles, Nigeria can unlock the potential of digital transformation to deliver on its national development agenda.

By:  Nana Appiah Acquaye

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